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Financial Planning

Prospective investors or lenders need information to assess if a business will provide a return on their investment or be able to repay credit provided.  While lenders seek much of this information in their application forms, investors and lenders look for additional information to support requests for finance.

These documents typically include:

  • Business plan
  • Independent financial accounts
  • Tax clearance certificate
  • Statement of assets and liabilities
  • Security/collateral available

Information Sought and Why It’s Needed

Business plan

The business plan explains what the business is, how it plans to make money, its aims and objectives and what its strategy and plans are.  Lenders and investors use the plan to assess the business, its current and future plans and its owners.

Banking & Payments Federation Ireland (BPFI) and the Consultative Committee of Accountancy Bodies-Ireland (CCAB-I) have preparedBusiness Planning Guidance.

Independent financial accounts and financial projections, especially cashflow forecasts

This information provides an insight into the business’s past, current and future performance. The information will help to indicate how the business will repay existing or upcoming debt over the medium to long term. It is crucial to state the assumptions behind any forecasts and to clearly explain why these are reasonable.

Tax clearance certificate

This is a a written confirmation from the Revenue Commissioners that a person’s tax affairs are in order at the date of issue of the Certificate.  A statement from an accountant confirming that your tax affairs are up to date may also be accepted.

A statement of business and owner assets and liabilities

This information is used to assess the overall financial position of the company and its owner. It takes into account the property assets of the owner, any savings or investments, as well as any loans or other liabilities.

Security/collateral available

The level and type of security/collateral available to a business to support a credit application could have an impact on a lender’s assessment so it is important for a business to state what security, if any, is available.